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Iron Mountain's (IRM) Q2 FFO Beats, Revenues Rise Y/Y
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Iron Mountain Incorporated (IRM - Free Report) reported second-quarter adjusted funds from operations (AFFO) per share of 93 cents, which surpassed the Zacks Consensus Estimate by a cent. This figure was 9.4% higher than the year-ago quarter’s 85 cents.
Iron Mountain’s results reflect robust performance in the storage and service segments, and the data-center business.
Quarterly total revenues of $1.29 billion increased 15.2% year over year. However, the figure missed the Zacks Consensus Estimate by 0.7%.
According to William L. Meaney, president and CEO of Iron Mountain, “We are pleased to report outstanding performance in the second quarter, including all-time record Revenue, Adjusted EBITDA and AFFO. These results are reflective of our team’s commitment to our customers and the expanded addressable market for our products and services."
Behind the Headlines
Storage rental revenues came in at $753 million in the second quarter, up 4.9% year over year. Also, service revenues amounted to $536 million, reflecting a rise of 33.7%.
Operating expenses increased 22.4% year over year to $995.7 million during the reported quarter.
The Global Data Center business reported revenues of $100.1 million in second-quarter 2022, rising 30% year over year.
The adjusted EBITDA improved 12.1% year over year to $455 million in the quarter, backed by a strong increase in service revenues and productivity benefits. The adjusted EBITDA margin contracted 90 basis points (bps) on a year-over-year basis to 35.3%.
Balance-Sheet Position
IRM exited the second quarter with $144.7 million of cash and cash equivalents, down from $195.7 million as of Mar 31, 2022.
Dividend Update
Concurrent with the second-quarter earnings release, IRM announced its third-quarter common stock cash dividend of 61.85 cents per share. The dividend will be paid out on Oct 4 to its shareholders on record as of Sep 15.
2022 Guidance
Iron Mountain reaffirmed its guidance for 2022.
It projects AFFO per share to lie between $3.70 and $3.82. The Zacks Consensus Estimate for the same is pegged at $3.78.
Management predicts total revenues to be within $5.125-$5.275 billion. The Zacks Consensus Estimate for the same is pegged at $5.20 billion.
Also, adjusted EBITDA is estimated to be in the band of $1,800-$1,850 million.
Simon Property Group, Inc.’s (SPG - Free Report) second-quarter 2022 comparable FFO per share of $2.96 exceeded the Zacks Consensus Estimate of $2.91. The figure compares favorably with the year-ago quarter’s $2.92.
SPG’s quarterly results reflected healthy operating performance and growth in occupancy levels. The retail REIT behemoth also raised the 2022 FFO per share outlook based on the quarterly results. It also announced a hike in the quarterly dividend.
Boston Properties Inc.’s (BXP - Free Report) second-quarter 2022 FFO per share of $1.94 beat the Zacks Consensus Estimate of $1.85. The figure also compared favorably with the year-ago quarter’s $1.72.
BXP’s quarterly results reflect growth in the bottom line. Also, it experienced strong leasing activity during the quarter.
Extra Space Storage Inc. (EXR - Free Report) reported second-quarter 2022 core FFO per share of $2.13, beating the Zacks Consensus Estimate of $2.04. The figure also came in 29.9% higher than the prior-year quarter’s $1.64.
EXR’s results reflect better-than-anticipated top-line growth. Also, the same-store net operating income improved year over year.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Iron Mountain's (IRM) Q2 FFO Beats, Revenues Rise Y/Y
Iron Mountain Incorporated (IRM - Free Report) reported second-quarter adjusted funds from operations (AFFO) per share of 93 cents, which surpassed the Zacks Consensus Estimate by a cent. This figure was 9.4% higher than the year-ago quarter’s 85 cents.
Iron Mountain’s results reflect robust performance in the storage and service segments, and the data-center business.
Quarterly total revenues of $1.29 billion increased 15.2% year over year. However, the figure missed the Zacks Consensus Estimate by 0.7%.
According to William L. Meaney, president and CEO of Iron Mountain, “We are pleased to report outstanding performance in the second quarter, including all-time record Revenue, Adjusted EBITDA and AFFO. These results are reflective of our team’s commitment to our customers and the expanded addressable market for our products and services."
Behind the Headlines
Storage rental revenues came in at $753 million in the second quarter, up 4.9% year over year. Also, service revenues amounted to $536 million, reflecting a rise of 33.7%.
Operating expenses increased 22.4% year over year to $995.7 million during the reported quarter.
The Global Data Center business reported revenues of $100.1 million in second-quarter 2022, rising 30% year over year.
The adjusted EBITDA improved 12.1% year over year to $455 million in the quarter, backed by a strong increase in service revenues and productivity benefits. The adjusted EBITDA margin contracted 90 basis points (bps) on a year-over-year basis to 35.3%.
Balance-Sheet Position
IRM exited the second quarter with $144.7 million of cash and cash equivalents, down from $195.7 million as of Mar 31, 2022.
Dividend Update
Concurrent with the second-quarter earnings release, IRM announced its third-quarter common stock cash dividend of 61.85 cents per share. The dividend will be paid out on Oct 4 to its shareholders on record as of Sep 15.
2022 Guidance
Iron Mountain reaffirmed its guidance for 2022.
It projects AFFO per share to lie between $3.70 and $3.82. The Zacks Consensus Estimate for the same is pegged at $3.78.
Management predicts total revenues to be within $5.125-$5.275 billion. The Zacks Consensus Estimate for the same is pegged at $5.20 billion.
Also, adjusted EBITDA is estimated to be in the band of $1,800-$1,850 million.
Iron Mountain currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Iron Mountain Incorporated Price, Consensus and EPS Surprise
Iron Mountain Incorporated price-consensus-eps-surprise-chart | Iron Mountain Incorporated Quote
Performance of Other REITs
Simon Property Group, Inc.’s (SPG - Free Report) second-quarter 2022 comparable FFO per share of $2.96 exceeded the Zacks Consensus Estimate of $2.91. The figure compares favorably with the year-ago quarter’s $2.92.
SPG’s quarterly results reflected healthy operating performance and growth in occupancy levels. The retail REIT behemoth also raised the 2022 FFO per share outlook based on the quarterly results. It also announced a hike in the quarterly dividend.
Boston Properties Inc.’s (BXP - Free Report) second-quarter 2022 FFO per share of $1.94 beat the Zacks Consensus Estimate of $1.85. The figure also compared favorably with the year-ago quarter’s $1.72.
BXP’s quarterly results reflect growth in the bottom line. Also, it experienced strong leasing activity during the quarter.
Extra Space Storage Inc. (EXR - Free Report) reported second-quarter 2022 core FFO per share of $2.13, beating the Zacks Consensus Estimate of $2.04. The figure also came in 29.9% higher than the prior-year quarter’s $1.64.
EXR’s results reflect better-than-anticipated top-line growth. Also, the same-store net operating income improved year over year.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.